What can creators learn from Matilda Djerf’s controversy?
Source: Instagram/Matildadjerf. Matilda Djerf, founder of Djerf Avenue, recently facing backlash over allegations of toxic workplace behavior.
What Creator Brands Can Learn from the Matilda Djerf Scandal
When a brand is built around a founder’s personal image, it becomes more than a business – it’s a reflection of their values, lifestyle, and personality. This unique connection fosters a deep sense of trust between the creator and their audience, but it also creates significant vulnerabilities. Recent events surrounding Matilda Djerf and her brand, Djerf Avenue, offer a cautionary tale for creator-led businesses. Here’s what happened and what we can learn from it.
The Rise of Matilda Djerf and Djerf Avenue
Matilda Djerf, a Swedish influencer turned entrepreneur, launched Djerf Avenue in 2019, positioning the brand as a sustainable, timeless clothing line inspired by her personal aesthetic. Leveraging her devoted social media following, she grew the company into a multi-million-dollar business, admired for its transparency, ethical claims, and intimate connection to its founder. Matilda’s image wasn’t just the face of the brand; it was the brand.
By 2023, Djerf Avenue reportedly hit impressive revenue numbers of approximately $34 million , solidifying its place as one of the most successful influencer-led businesses. However, this symbiotic relationship between creator and brand was tested when allegations emerged that shook the foundation of trust Matilda had built with her audience.
The Allegation and Response
The controversy began with allegations that Matilda Djerf had mistreated employees, fostering a toxic work environment contrary to the brand’s values of kindness and inclusivity. Specific claims included a reported incident where Matilda maintained a private restroom for herself and select employees; one employee who mistakenly used it was allegedly instructed to clean it as a consequence. Additionally, she faced accusations of body-shaming, including comments about a plus-sized model looking "so fat" in certain clothing, which many saw as hypocritical given the brand's inclusive marketing. Former employees also described a work culture marked by intimidation and fear, with reports of public scolding and anxiety-inducing management practices. These accounts painted a picture at odds with the carefully curated image she presented online.
When the allegations surfaced, Matilda responded publicly, emphasizing her commitment to improving the company’s internal structures. She acknowledged the criticisms and outlined plans to restructure the business to ensure a healthier workplace. While the transparency of her response earned some praise, many fans expressed feelings of betrayal. After all, they had trusted her not just as a brand owner but as a person.
The Unique Challenges of Creator-Led Brands
This situation highlights a critical issue: creator-led brands operate differently from traditional businesses when faced with public crises. In a typical company, leadership might issue a statement, remove the problematic individual, and move forward. However, for a creator-led brand, there is no separation between the founder and the business.
Matilda cannot “fire” herself from Djerf Avenue. Her personal brand is inextricably tied to the company’s identity. When she missteps, the brand suffers directly – not just financially but reputationally.
For creator-led brands, a PR crisis can have devastating ripple effects:
Immediate Sales Impact: Fans often “vote with their wallets,” withdrawing support from a brand they feel has betrayed their trust.
Loss of Credibility Across Channels: Beyond product sales, the ripple effect often extends to partnerships and sponsorships, which are critical for creator revenue. For instance, influencer James Charles faced a similar fallout when allegations affected his beauty collaborations, causing brands to distance themselves rapidly.
Intensified Scrutiny: Audiences expect more from creator-led brands because the marketing is built around personal trust and authenticity. A misstep feels like a personal betrayal, not just a corporate failing.
Lessons for Creator Brands
Anticipate Vulnerabilities: Creator brands must recognize their heightened exposure to PR crises. Unlike traditional companies, where issues can often be isolated, the personal connection amplifies the fallout.
Build Robust Structures: As Matilda acknowledged in her response, having proper organizational systems in place is crucial. This includes HR protocols, external audits, and clear accountability measures to ensure the business operates ethically and sustainably.
Bring in External Expertise: Growing and scaling a creator brand requires more than the founder’s vision. This is where agencies like RNDR come in, offering specialized insights to identify blind spots, establish strong operational foundations, and provide strategic guidance to ensure long-term stability. An external perspective is essential for creating a bulletproof business model that can withstand crises.
Maintain Transparency: While transparency is risky during a PR crisis, it’s often the best way to rebuild trust. Matilda’s acknowledgment of the issues and her plans to improve demonstrated accountability, even if it didn’t completely satisfy her audience.
Separate the Brand from the Founder (Where Possible): While the founder’s personality often drives the brand’s initial growth, the product or service itself must stand on its own merit. A business that provides genuine value, high-quality products, or exceptional service can maintain trust and customer loyalty, even if the founder faces personal challenges. This independence is crucial to building a resilient brand identity.
Key Takeaways
Creator-led brands are uniquely positioned to build deep, loyal communities, but this strength is also a potential weakness.
